What: Amazon is nudging customer decisions by asking them to pay when they decide to return through less financially interesting partners such as UPS.

Why it is important: Such an approach makes sense for department stores as it could help them significantly nudge customers in favour of omnichannel in-store returns.

Amazon is reportedly charging customers a fee for returning products to UPS Stores when they could have used a Whole Foods, Kohl’s, or Amazon Fresh location within the same distance or closer.

The new fee aims to cover the cost of returns. Retailers and brands across various product categories are reevaluating their return policies due to rising costs. Some brands are charging return or restocking fees, shortening return windows, or using virtual try-on technology to reduce returns.

In the US, 96% of shoppers review return policies before making a purchase, highlighting the importance of these policies for customer decisions.

Amazon is charging new fees on some returns